FundedHere is quoted as saying each bond is expected to raise up to S$5 million (around $3.7 million). It has already put out an estimate of a coupon rate of about 9 per cent - paid quarterly - over a tenure of one-to-two years for such bonds. It will target minimum subscription of S$50,000 each from registered accredited investors on its platforms. This means a S$5 million issue should be filled by 100 investors, it said.

The organisation, which holds a capital markets services licence, said companies issuing their bonds would not be required to issue a prospectus. Singapore Stock Exchange-listed issuers must meet the following FundedHere criteria: they must be majority-owned by Singapore citizens; they must have positive net tangible assets; and they must not be on the SGX watchlist, the report said.

The bonds must each be backed by a corporate guarantee, and FundedHere is in discussions with an insurance agency to underwrite the bonds, it added.

The first bond is expected to be issued before the end of September.